At Netflix's annual shareholder meeting in 2011, stockholders overwhelmingly voted in favor of a proposal that would have required a simple majority vote on all issues that require greater than a simple majority vote.
You can read my coverage of the issue from 2011 over at Seeking Beta.
Let's put into perspective how big of a deal this was last year, despite the fact that the entire financial media ignored it.
Shareholders get a proposal on the proxy at Netflix's annual meeting. Shareholders approve the measure by nearly a 3-to-1 margin. It goes back to the Netflix board for adoption and -- there's no other way to state it -- they, led by Hastings, ignore the will of the shareholders and choose not to implement the proposal.This morning, when it announced the poison pill plan, Netflix used pretty much the same language it used last year when knocking back the simple majority proposal:
[The poison pill is] intended to protect Netflix and its stockholders from efforts to obtain control of Netflix that the board of directors determines are not in the best interests of Netflix and its stockholders, and to enable all stockholders to realize the long-term value of their investment in Netflix.That's how it rolls at Netflix. The board "determines" what is in the "best interest" of Netflix and its stockholders, even if most of these stockholders think otherwise. Where's the Securities and Exchange Commission when you need it? There should be laws that actually get enforced against this type of behavior. Follow @RoccoPendola At the time of publication, Rocco Pendola held no positions in any of the stocks mentioned in this article.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV